Busi­ness In­sight

The Daily Telegraph - Business - - Business Comment -

DS Smith has bumped up its sales and profit fore­casts as the card­board spe­cial­ist cap­i­talises on changes in con­sumer be­hav­iour, writes Char­lie Tay­lorKroll.

The FTSE 100 com­pany, which makes card­board packaging for com­pa­nies such as Laith­waite’s and Lavazza, said that sales and ad­justed op­er­at­ing profit for the half year to Oct 2018 were ex­pected to be “ma­te­ri­ally” higher than the same pe­riod last year.

The packaging com­pany has been boosted by a change in con­sumer be­hav­iour, as shop­pers move away from tra­di­tional stores on the high street. A boom in on­line shop­ping means that the de­mand for packaging from re­tail­ers has steadily risen. Sales at DS Smith have dou­bled since 2012, af­ter it be­came a sup­plier of card­board boxes to on­line re­tail ti­tan Ama­zon.

The com­pany has also been on an ac­qui­si­tion spree over the past year, in­clud­ing a £1.45bn deal for Spain’s Europack.

Miles Roberts, chief ex­ec­u­tive of DS Smith, said he was pleased with the half-year per­for­mance.

He added that the com­pany “ex­pects good on­go­ing mar­ket share growth” and “views the fu­ture with con­fi­dence”.

A wave of ac­qui­si­tions has left DS Smith con­fi­dent for the fu­ture

Miles Roberts said he ex­pected “good on­go­ing growth” in mar­ket share

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